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treatment costs: Health Ministry to consult states on fixing hospital treatment costs

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The health ministry will start consultations with state governments this week for suggestions on fixing charges for treatment at healthcare centres across the country.

This follows the Supreme Court last week raising concern over the wide variation in treatment costs between government and private healthcare centres. It directed the Centre to expeditiously fix treatment charges to be paid by patients, giving six weeks for the same.

The SC criticised the Centre’s failure in specifying the range of rates within which private hospitals and clinics can charge patients. Although a rule in this regard was framed twelve years ago, the court noted that it has not been enforced yet.

The Supreme Court had also asked the Union health secretary to call a meeting of his state counterparts to end the disparity in rates and ensure notification of a standard rate within a month.

“Health is a state subject; the Centre can only to some extent direct the states. However, as suggested by the court, we will hold consultations to seek their suggestions and file a reply before the Supreme Court,” a person in the know told ET.

Highlighting the stark difference in treatment costs between government and private healthcare centres, the apex court asserted that citizens have a fundamental right to healthcare, and the government cannot evade its responsibility in ensuring this right.The Association of Healthcare Providers (AHPI), which represents medium and small hospitals, will also file an intervention in the Supreme Court on behalf of the industry this week, Girdhar Gyani, director general of the association, told ET.Gyani has also written to the health ministry recommending working out costing of various procedures based on established scientific principles and fixing rates in the ‘range’ to address the categorisation of establishments.

Private hospitals say that the move will be “catastrophic” for the industry as there are too many variables involved.

“The cost depends on so many other factors, even geographies. The input cost is higher in Delhi than in UP. Since the minimum wages are lower in UP, the hospital may choose to pass it on to the patients. But the same cannot be applied in a place like Delhi. If it is standardised, the quality will suffer,” an executive said.

A second executive said the cost structure is different in each hospital “as it depends on various factors like the experience of the doctors, facilities in the OT, the kind of infection control policy which is adopted by the hospital, patient safety measures, IT services etc.” “Price cannot be standardised for a big hospital and a small clinic,” the executive said.